Geoinformatics Exploration Inc.
TSX VENTURE : GXL

Geoinformatics Exploration Inc.

September 08, 2005 15:12 ET

Geoinformatics Announces Sale of Nixon Fork Royalty

TORONTO, ONTARIO--(CCNMatthews - Sept. 8, 2005) -

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Geoinformatics Exploration Inc. (TSX VENTURE:GXL) ("Geoinformatics" or the "Company") is pleased to announce that it has sold its 1% Net Smelter Returns ("NSR") over the Nixon Fork Project Area to Ambrian Partners Limited ("Ambrian") for US$225,000. In the event Ambrian receives US$500,000 in aggregate NSR payments within five years of the commencement of NSR payments, Geoinformatics will be entitled to one-third of the 1% NSR thereafter.

Geoinformatics acquired the NSR in January 2005 through an exploration service agreement with Mystery Creek Resources, Inc., whereby Geoinformatics provided data aggregation, data mining and three-dimensional modeling and identified and prioritized exploration drill targets (termed an "Intervention") for the Nixon Fork Project Area. A key element of Geoinformatics' business strategy is to acquire certain rights and assets in conducting Interventions for third parties and to hold such assets until optimal value can be obtained. The sale of the Nixon Fork NSR to Ambrian is the first monetization by Geoinformatics of such an asset.

"Our business model focuses on acquiring assets, adding value through our Intervention work and exiting at the optimal time, and now we have our first sale," commented Mike Smyth, President and CEO of Geoinformatics. "This transaction proves that we have a market for our assets."

Also, Geoinformatics is pleased to announce that St. Andrew Goldfields Limited (TSX-SAS, "St. Andrew", www.standrewgoldfields.com), one of its alliance partners, has recently announced it has commenced a drilling program at Eskay Creek, British Columbia, to test previously announced exploration targets that were developed by Geoinformatics. These targets were based on the geophysical interpretation and modeling of the results of the helicopter-borne time-domain electromagnetic (AeroTEMII) survey undertaken by Aeroquest Limited during the fall of 2004 in conjunction with the updated 3-D databases and 3-D model of the Eskay Creek region. Geoinformatics identified ten new exploration targets that will be drilled in addition to the Hexagon mineralization discovered in 2003 that remains an exploration priority.

Over 2,500 meters of drilling is planned by St. Andrew which has budgeted $900,000 for this summer's 2005 exploration program. Geoinformatics will be managing the drilling program in conjunction with St Andrew's exploration personnel. Geoinformatics has a management agreement with St Andrew and a 0.5% NSR Royalty on any targets developed by Geoinformatics.

On August 29, 2005, Geoinformatics released its second quarter financial statements and Management Discussion and Analysis for the period ended June 30, 2005. These documents are available on SEDAR at www.sedar.com.

About Geoinformatics

Geoinformatics is a global mineral exploration company that exchanges intellectual capital for equity through an innovative approach to exploration. Geoinformatics has relationships with a number of global mining companies which have provided it with a pipeline of exploration resource projects. The Company has a dedicated team of geoscientists and technical experts which has developed a unique scientific and technology platform (the "Geoinformatics Process") which integrates data aggregation, data mining and three-dimensional modeling to identify prioritize exploration drill targets. The Company's goal is to provide the mining community with faster and cheaper methods that lead to better success rates of discovery.

This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management's objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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